As Prepared for Delivery on June 25, 2020
Thank you, Mr. Chairman.
It is important to note that the possibility of making distributions to the former members of the failed corporate credit unions (U.S. Central, WesCorp, Members United, Southwest, and Constitution), as outlined on the NCUA website (opens new window), arose from the prescient actions of past NCUA Board Members and agency staff.
During the Financial Crisis of 2008-2009, NCUA Chair Mike Fryzel worked to design and develop the policies and infrastructure of the NCUA Guaranteed Notes (NGN) program and the mortgage-backed securities (MBS) lawsuits that laid the cornerstone for these potential distributions. Without the NGN program and the MBS lawsuits, it is unlikely that any of the recent past or projected distributions would occur. NCUA Chair Debbie Matz then worked diligently to further design, develop, and implement these policies, programs, and lawsuits.
During my chairmanship, NCUA Chair Rick Metsger and I merged the Temporary Corporate Credit Union Stabilization Fund into the National Credit Union Share Insurance Fund thereby permitting, without premium assessment to any credit union:
- The payment of nearly $900 million in distributions to credit unions;
- The funding of over $700 million in reserves for credit union losses; and
- The dramatic improvement in the safety and soundness of the Share Insurance Fund.
Most importantly, AMAC and other NCUA staff members have worked tirelessly for over a decade to implement these NCUA Board policies and prudently manage the assets held in the corporate asset management estates.
I wish to express my sincere thanks to my former Board colleagues and the NCUA staff — particularly Sarah Vega, Mike Radway, Steve Bosack, Mark Treichel, John Kutchey, Larry Fazio, and Rendell Jones, among many others — for their vision and wisdom in staying the course when others were calling for the agency to “fire-sell” the corporate assets and refrain from wasting time and resources on “frivolous” lawsuits. These so-called pundits were way off the mark. I am pleased that my tenure on the NCUA Board has lasted long enough to witness the fruits of the labor of those who have come before me.
It is my hope that the agency will begin making distributions to the former members of the failed corporates as soon as is prudently and legally possible and will continue the distributions until the funds are exhausted. Today, during the pandemic, the former corporate members would no doubt welcome any such distributions.